PolicyBrief
H.R. 3543
119th CongressMay 21st 2025
College for All Act of 2025
IN COMMITTEE

The College for All Act of 2025 establishes federal-state partnerships and grants to eliminate tuition and fees at public and tribal colleges, boosts Pell Grants, and increases funding for minority-serving institutions.

Pramila Jayapal
D

Pramila Jayapal

Representative

WA-7

LEGISLATION

College for All Act of 2025: Tuition Eliminated at Public Colleges by 2030, Pell Grants Double to Nearly $15K

The “College for All Act of 2025” is a massive overhaul of how Americans pay for higher education, focusing on eliminating tuition and dramatically boosting financial aid. Starting in 2026, it sets up a Federal-State partnership designed to completely wipe out tuition and required fees for eligible students at public colleges, universities, and Tribal Colleges.

The Free College Roadmap: From 100% Federal to Shared Costs

Title I is the core of this bill, creating the “College for All” partnership. For eligible students—meaning anyone without a bachelor’s degree, regardless of age or immigration status, who meets residency and income requirements—tuition and fees are eliminated. The program starts in the 2026–2027 award year. Crucially, the federal government covers 100% of the cost in that first year, but that share gradually drops to 80% by 2030–2031. States are required to pick up the rest, meaning they must contribute 20% of the cost by 2030–2031, a significant, mandatory increase in state spending.

For four-year public institutions, the free tuition applies only to “working class or middle class” students, defined by income caps: a dependent student’s family income must be under $300,000 (if married parents) or $150,000 (if a single parent) in 2026–2027. If you’re an independent student, the caps are the same. This means that if you’re a mid-career professional looking to go back for a second degree or finish your first, you’re covered, provided you meet the income limits.

Quality Control and Faculty Mandates

Getting this federal money comes with serious strings attached for participating states and colleges. To prevent schools from simply cutting corners once tuition revenue is gone, the bill mandates a “Maintenance of Effort” (MOE) requirement, forcing states to maintain their current spending levels on higher education support and need-based aid. Moreover, colleges must maintain their spending on instruction per student.

There’s a major labor requirement here: within five years, at least 75% of instruction at public colleges must be taught by tenure-track or tenured faculty. For adjunct faculty and those relying on contingent work, this could be a huge shift toward job stability. For states, this means a significant increase in payroll and benefits costs compared to relying on cheaper, part-time instructors.

The Pell Grant Power-Up

Title III delivers an immediate and massive boost to the Federal Pell Grant program. For the 2026–2027 school year, the maximum award jumps to $14,790—more than double the current maximum. This is huge because when tuition is eliminated under Title I, students can use their Pell Grant money for the remaining costs of attendance—rent, food, books, and transportation. For a low-income student, this increase effectively becomes a substantial living stipend.

This title also expands eligibility to include “Dreamer students,” defining those who entered the U.S. before age 16 and meet certain education or military service requirements. Additionally, the bill makes all Pell Grant amounts tax-free, treating the grants as a qualified scholarship regardless of how the student spends the money.

Targeted Support for MSIs and Student Success

Recognizing the role of minority-serving institutions (MSIs), Title II creates a separate grant program to eliminate tuition and fees for eligible students at private, non-profit Historically Black Colleges and Universities (HBCUs) and other MSIs, also starting in 2026–2027. The income thresholds for students at these schools mirror those at the public four-year institutions.

Title IV and V inject billions into programs designed to improve student outcomes. Funding authorizations for the Federal TRIO Programs (which support low-income and first-generation students) are authorized to triple to $3 billion for fiscal year 2026. A new “Inclusive Student Success Grant” program also authorizes $10 billion for 2026 to help colleges implement proven reforms like better advising, smoother transfer pathways, and increased mental health support.

The Fiscal Reality Check for States

While the elimination of tuition is a massive win for students, the bill places a substantial, ongoing fiscal burden on states. They must maintain their current spending levels (MOE) and gradually assume 20% of the cost of the tuition elimination program. The bill does include an “automatic stabilizer” provision to help states during economic downturns, allowing the Secretary to waive MOE requirements or temporarily increase the federal share if state unemployment spikes. This is a smart safeguard, recognizing that state budgets are volatile and need flexibility to sustain a program this large.